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August 8, 2023
ISLAMABAD: The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) on Monday rejected an offer for outsourcing of Bulk and General Cargo Terminal at East Wharf, Karachi Port at throwaway rates and directed a negotiating team to get it improved from the Abu Dhabi Ports (ADP) of the UAE or else the transaction would fizzle out within two days.
Informed sources said a negotiating team led by Minister for Maritime Affairs Faisal Sabzwari briefed the CCoIGCT about negotiations on a commercial agreement for 15 years between Karachi Port Trust (KPT) and AD Ports of UAE over the weekend that was found to be too low. Some participants observed that it appeared the transaction was being taken for a ride.
As a consequence, the meeting presided over by Finance Minister Ishaq Dar desired the offer should be improved since it was being processed under the G2G mechanism, otherwise the transaction may not materialise as the current government would cease to hold office within two days.
“The CCoIGCT considered and reviewed the progress of the negotiation committee which held its negotiations on Aug 4 and 5 on the commercial agreement between KPT and AD Ports for the development of bulk and general cargo terminal at East Wharf and directed the negotiation committee to re-engage with AD Ports to improve the terms offered by it”, an official statement said.
The meeting was also attended by Maritime Affairs Minister Faisal Subzwari, Commerce Minister Syed Naveed Qamar, Power Minister Khurram Dastgir Khan, Minister of State for Petroleum Musadik Masood Malik, SAPMs on Finance and Revenue Tariq Bajwa, Tariq Mehmood Pahsa respectively besides secretaries for Maritime Affairs and Law & Justice.
On Thursday last, the CCoIGCT had constituted Mr Subzwari led a five-member committee to negotiate commercial terms with the UAE government for the outsourcing of bulk and general cargo terminal and associated infrastructure to ADP through negotiations on a G2G basis without any bidding for competition or price discovery. Other members of the committee included the chairman and three general managers of KPT. The transaction was meant to be signed and sealed before the government steps aside for the caretakers.
Karachi Port consists of three wharves -- East, West and South containing five terminals. Three docking terminals are outsourced to Terminal Operating Companies (TOC) while the remaining two i.e. Oil Terminal and Clean Bulk Cargo Terminal (CBCT) are presently operated by the KPT. The CBCT was handed over to KPT in 2016 after it was built with a loan from World Bank.
Offer for Karachi Port terminal rejected as ‘too low’
Khaleeq KianiAugust 8, 2023
ISLAMABAD: The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) on Monday rejected an offer for outsourcing of Bulk and General Cargo Terminal at East Wharf, Karachi Port at throwaway rates and directed a negotiating team to get it improved from the Abu Dhabi Ports (ADP) of the UAE or else the transaction would fizzle out within two days.
Informed sources said a negotiating team led by Minister for Maritime Affairs Faisal Sabzwari briefed the CCoIGCT about negotiations on a commercial agreement for 15 years between Karachi Port Trust (KPT) and AD Ports of UAE over the weekend that was found to be too low. Some participants observed that it appeared the transaction was being taken for a ride.
As a consequence, the meeting presided over by Finance Minister Ishaq Dar desired the offer should be improved since it was being processed under the G2G mechanism, otherwise the transaction may not materialise as the current government would cease to hold office within two days.
“The CCoIGCT considered and reviewed the progress of the negotiation committee which held its negotiations on Aug 4 and 5 on the commercial agreement between KPT and AD Ports for the development of bulk and general cargo terminal at East Wharf and directed the negotiation committee to re-engage with AD Ports to improve the terms offered by it”, an official statement said.
The meeting was also attended by Maritime Affairs Minister Faisal Subzwari, Commerce Minister Syed Naveed Qamar, Power Minister Khurram Dastgir Khan, Minister of State for Petroleum Musadik Masood Malik, SAPMs on Finance and Revenue Tariq Bajwa, Tariq Mehmood Pahsa respectively besides secretaries for Maritime Affairs and Law & Justice.
On Thursday last, the CCoIGCT had constituted Mr Subzwari led a five-member committee to negotiate commercial terms with the UAE government for the outsourcing of bulk and general cargo terminal and associated infrastructure to ADP through negotiations on a G2G basis without any bidding for competition or price discovery. Other members of the committee included the chairman and three general managers of KPT. The transaction was meant to be signed and sealed before the government steps aside for the caretakers.
Karachi Port consists of three wharves -- East, West and South containing five terminals. Three docking terminals are outsourced to Terminal Operating Companies (TOC) while the remaining two i.e. Oil Terminal and Clean Bulk Cargo Terminal (CBCT) are presently operated by the KPT. The CBCT was handed over to KPT in 2016 after it was built with a loan from World Bank.
Offer for KPT terminal rejected as ‘too low’
Cabinet panel asks negotiating team to seek better offer, otherwise deal would stand cancelled after two days.
www.dawn.com
